The United Auto Workers union last month won a historic new contract for its 146,000 members, bringing more than 40 days of steadily expanding rolling strikes to a close. The new contracts prominently feature 25% wage increases over the four-year terms of the contract, in addition to cost-of-living adjustments, better retirement contributions and enhanced benefits.
The contracts must be ratified by the membership before they are enacted; once ratified, workers will receive an 11% pay raise, with the remaining 14% to come over the terms of the contract.
But perhaps the most impactful moment of the strikes came when UAW president Shawn Fain set his sights on grander horizons, saying in October that workers at prominent non-union companies like Toyota TM, Honda HMC and yes, even Tesla TSLA, are the "UAW members of the future."
Related: How the UAW auto union landed its record contracts: A timeline of events
"When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six," the union said last month.
And amid reports that a UAW organizing committee has made forays into at least one Tesla plant, several of these automakers have been making moves to protect against the threat of this empowered union. Toyota on Nov. 1 announced wage increases for its workers; Honda on Nov. 10 made a similar announcement.
Hyundai HYMLF on Monday joined its two non-union peers in announcing a big wage boost to shield against potential unionization efforts by the UAW.
Related: Elon Musk's Tesla has a new union problem on the heels of historic union win
The new wage structure will only impact employees at Hundai's manufacturing plants in Alabama and Georgia. Workers will see their hourly wages increase by 25% by 2028.
“We have the best team members in the industry, and we are compensating them accordingly,” José Muñoz, president and global COO of Hyundai said in a statement. “Hyundai continuously strives to maintain competitive wage and benefits commensurate to industry peers."
The wage increase, which mirrors that which the UAW won, comes as Hyundai is investing more than $12 billion to build its Hyundai Motor Group Metaplant America factory, as well as two battery joint ventures in Georgia.
The company said that the investment would create 12,000 direct jobs, adding that, with a new increase coming in January, the 4,000 workers at its Alabama factory will have received 14% wage increases over the past 12 months.
Hyundai also highlighted a recent study by the Center for Automotive Research that found that Hyundai's operations contributed more than $20 billion and nearly 200,000 jobs to the U.S. economy in 2021.
Hyundai shares, up 26% for the year, fell more than 1% Monday.
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